Comment from NFU Scotland

Head of NFU Scotland’s Policy Team, Gemma Cooper said: “NFUS has raised concerns directly with Scottish Government about proposals relating to short term lets.

“We have serious worries about the impact of the proposals on our farmers and crofters who have diversified to offer self-catering and short term accommodation.  Such facilities have a hugely beneficial impact on local rural economies.

“Our view remains that these proposals to introduce an onerous scheme on small rural businesses are a sledgehammer to crack a city-based nut and we want further consideration of the views of industry to be taken into account when MSPs next come to discuss legislation.”

Local Government Committee approves ‘arbitrary, irrational & draconian’ short-term let licensing plans

The Scottish Parliament’s Local Government, Housing and Planning Committee have today approved the Scottish Government’s plans to introduce short-term let licensing. The regulations will now head to plenary for a vote of all MSPs at a later date.

During their meeting, the Committee heard evidence from the Cabinet Secretary for Housing Shona Robison, accompanied by her officials, who took questions from MSPs. They was also joined by the former Cabinet Secretary for Tourism Fergus Ewing who raised a number of concerns relating to the licensing proposals.

Mr Ewing highlighted that the industry’s proposals for mandatory short-term let registration, just as with the Scottish Landlord Register, could include a fit and proper test – which the government maintained wasn’t the case when dismissing our exemption proposal. He also made valuable points in relation to the existing regulations faced by industry, anti-social behaviour powers that local councils needed to enforce, and the threat of judicial review arising from the licensing proposals.

Questions were also put on the following from other MSPs:

  • The data underpinning the Scottish Government’s plans.
  • Whether overprovision powers could be brought back at a later date.
  • Why a mandatory registration scheme had been rejected in favour of licensing.
  • The costs to local authorities arising from licensing, specifically the differences in the level of fees estimated in the Scottish Government’s BRIA and those from SOLAR.
  • If the Scottish Government had considered piloting their regulations, or giving local councils full powers to determine whether licensing was appropriate for their area.
  • The costs to business from licensing and compliance costs – and if many businesses would close as a result.
  • The views of Police Scotland on short-term let licensing and the anti-social behaviour powers already available to local councils in respect of holiday lets.
  • The Scottish Government’s planned review of licensing in 2023.

After the Committee discussion, the licensing plans were approved by five votes to two.

You can view a recording of the evidence session and vote here: https://www.scottishparliament.tv/meeting/local-government-housing-and-planning-committee-december-21-2021

In response to today’s development, the ASSC have issued the following comment.

Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, said:

“The ASSC is naturally disappointed that the Committee has agreed to the revised Licensing Order. This is despite the strength of opposition highlighted in their recent survey, not to mention widespread concern from tourism, business and local authority stakeholder responses in the Scottish Government’s third consultation exercise on the issue.

We maintain that the Scottish Government’s regulations were unfit for purpose when withdrawn in February 2021 and remain so in December 2021, largely as industry and expert insight has been dismissed. Make no mistake, they will damage the Scottish tourism industry – which is still in survival mode – and will burden local councils at a time they can least afford it.

It also comes at the worst possible time for self-caterers and B&B owners who face an uncertain future with the challenges associated with Covid-19. Policymakers need to take these circumstances into account and support small and micro businesses through this and minimise the burden.

We endorse the views expressed at the Committee by the former Cabinet Secretary for Tourism Fergus Ewing on the merits of a mandatory registration scheme, which contrary to the position of the Scottish Government, could include a fit and proper person test. Mr Ewing also raised the valuable economic contribution made by the industry but that many operators will now fear their business being confiscated through the draconian powers made available to local councils and the risk of judicial review therein.

These regulations are, in the words of the former Cabinet Secretary, ‘arbitrary, irrational & draconian’, and it is not too late for the Scottish Government to think again. With the regulations now heading to a vote in plenary, we would therefore strongly encourage all MSPs to back small business and protect livelihoods in Scotland’s £867m self-catering industry by rejecting these ill-timed and onerous plans.”

 

https://www.heraldscotland.com/politics/19800535.snp-msp-fergus-ewing-labels-governments-airbnb-crackdown-plans-draconian/

Letter to the First Minister

Today, the following letter was sent to the First Minister:

20th December 2021

Dear First Minister,

THE SCOTTISH GOVERNMENT’S SHORT-TERM LET LICENSING SCHEME

These are challenging times for our country – for individuals, families, society, and the economy. As you appreciate, the Scottish tourism sector has been particularly badly affected by the pandemic. In recent days, the tourism accommodation sector has experienced widespread cancellations as a consequence of government announcements. Our industry has done all we can to support the Scottish Government throughout the pandemic – but so many of our businesses are now in survival mode.

While there will always be circumstances beyond the government’s control, there are options we can take – working collaboratively in this endeavour – which can ease the burden for those under pressure. Changing short-term let regulation can and will make a major and lasting difference to thousands of legitimate small and micro businesses throughout Scotland.

That is why we collectively welcomed the withdrawal of the Scottish Government’s short-term let licensing regulations in February 2021 as they were widely recognised as not fit for purpose. Sadly, the revised regulations remain unfit for purpose in December 2021 and come at the worst possible time. Even in the pre-Covid trading environment, a licensing scheme along the lines envisaged would pose major difficulties. But given the ongoing impact of the pandemic, with Scotland facing “a tsunami” of omicron cases as you note, this will be devastating for so many longstanding, diligent and professional businesses operating on small profit margins.

Right now, businesses offering short-term lets are facing a perfect storm: first, the looming imposition of licensing at a national level; second, the possibility of planning control areas at a local level; and third, the spectre of additional Covid-19 uncertainty and restrictions. To compound matters, the recent Draft Budget made reference to the resumption of work on a visitor levy. Those who have been treading water now fear being totally submerged.

Make no mistake, this onerous and costly licensing scheme will cause many traditional self-caterers and B&B operators to leave the sector – hitting the supply chain and local economies in the process – and reducing the diversity of accommodation available and Scotland’s capacity to welcome visitors to our country.

But it doesn’t have to be this way. There is a cross-industry backed, viable and legally sound alternative regulatory proposal for mandatory registration, devised by the Association of Scotland’s Self-Caterers and endorsed by VisitScotland, which can meet the government’s policy objectives in a more cost-effective and proportionate manner. Just to re-emphasise, industry is not averse to regulation; we simply question the timing and specific nature of your proposals. We want to work with the Scottish Government to get this right to protect jobs and livelihoods at this critical time.

This is an issue of significant importance to our industry and members operating businesses the length and breath of our country. We earnestly hope you share our commitment to helping Scottish tourism’s recovery from the pandemic and therefore urge you to listen to the united voice of small business and reassess this damaging licensing system without delay.

Yours sincerely,

Association of Scotland’s Self-Caterers: Fiona Campbell, Chief Executive

Professional Association of Self-Caterers UK: Alistair Handyside, Chairman

Scottish AgriTourism: Caroline Millar, Sector Lead

Scotland’s Best B&Bs: Gordon Bulloch

Scottish Bed & Breakfast Association: David Weston, Chairman

Scottish Land & Estates: Simon Ovenden, Policy Officer